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We are encouraged by the progress our economy has made – GDP is growing, more than 1.9 million new jobs have been created in the past 13 months, unemployment rates are below the averages of the 1970's, 1980's, and 1990's, homeownership is at an all-time high, and government receipts are rising. All of this shows that the President's tax relief initiatives are having the intended effects. With the economy performing better, the deficit is lower than originally forecast in the Mid-Session Review and the President's FY 2005 Budget. The combination of a growing economy bringing in increased revenues, along with tight controls on spending, will enable us to reach the President's goal of cutting the budget deficit in half in five years, bringing it to a level that will be low by historical standards at less than 2 percent of GDP.